Home Loan Rates

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<p>The lowest home loan rate in the market has dropped to 1.69 percent at the Greater Bank.</p>

<p>It announced the new market leading rate of 1.69 percent following a cut of 0.20 percent to its 1 year fixed rate for owner occupiers paying principal and interest. </p>

<p>Canstar editor-at-large and money expert, Effie Zahos says chasing a low rate should be on every homeowners’ radar.</p>

<p>“Interest rates will remain at rock bottom for the next three years, though fixed rates are likely to rise before variable rates do as the longer term bond market starts to anticipate monetary tightening a few years ahead,” Zahos said..</p>

<p>“The move from Greater Bank proves competition is still rampant in the home lending space,” she said. </p>

<p>UBank is at 1.75 percent followed by Homestar at 1.75 percent.</p>

<p>Ratecity noted Greater Bank borrowers will need to shop around or refix their rate after the first year as the loan reverts to a variable rate of 3.66 per cent. </p>

<p>Greater Bank home loans are only available for borrowers in NSW, ACT and Queensland. </p>

<p>RateCity.com.au analysis shows if an owner-occupier with a $400,000 home loan switched from the average existing owner-occupier rate of 3.05 per cent, to this new rate from Greater Bank, they could potentially save $5,039 in the first year, including refinancing costs. </p>

<p>However, after five years borrowers could be $3,849 worse off, unless they switch or refix their loan.</p>

<p><img alt="" height="492" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/ratecity_cheapest_home_loan.jpg" width="604"></p>

<p>Notes: based on an owner occupier paying principal and interest, switching loans 5 years in to a 30 year home loan with a balance of $400K. Assumes the customer does not refix / refinance after the 1 year fixed rate expires. Refinancing costs include discharge fees but not government fees.</p>

<p>RateCity.com.au data shows 24 lenders have cut 317 home loan rates since 1 January.</p>
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Canstar editor-at-large and money expert, Effie Zahos says chasing a low rate should be on every homeowners’ radar.

jchancellor

Home loan rate hits new record low of 1.69%

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<p>GUEST OBSERVER</p>
<p>Recent changes to investor lending is failing to have a significant impact on home loan demand, new data has revealed. </p>
<p>According to the July Housing Finance Data from the Australian Bureau of Statistics, 53,095 home loans were approved over the course of the month – up 0.3% on the month prior. </p>
<p>The total value of all dwelling commitments was also up, with more than $32 billion in home loans written throughout July. </p>
<p>The spike in home loan demand and value of dwelling commitments was interesting, especially given the current market conditions. </p>
<p>Over the last few months, Australia’s lenders have made some sweeping changes to their policy and pricing in a bid to reduce their level of investment lending. </p>
<p>As such, you would expect these changes to have some impact on the level of investment demand. But, according to today’s data at least, the changes seem to have had little to no impact on the level of demand.</p>
<p>Of course it is still early days, and considering most of the changes were made in June and July, we are unlikely to see the true impact of these changes for some months yet.</p>
<p>Commenting on the 1.5% spike in the value of all loans written over the month of July, Mr Flavell said the result wasn’t surprising given that property prices across the combined capital cities continue to rise. </p>
<p>Data from CoreLogic found property values actually climbed 2.8% across the combined capital cities over the month of July. </p>
<p>Sydney and Melbourne were once again the standout performers, with the two capital cities recording property price growth of 3.3% and 4.9% respectively.</p>
<p>With property prices continuing to rise quite quickly month after month, there is little wonder why we are seeing growth in the value of all loans written.</p>
<p><em>John Flavell is chief executive officer <a href="https://www.mortgagechoice.com.au" target="_blank">Mortgage Choice</a>.</em></p>
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jchancellor-FAypfDUnLy

Home loan demand higher despite changes to investor lending: Mortgage Choice's John Flavell

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<p>From 1 January to 31 December there were 6,777 cuts to home loans, with an average cut of -0.30%, according to Canstar's database.</p>

<p>It recorded:</p>

<ul>
<li>880 cuts to variable rates for owner occupiers, with an average cut of -0.21%</li>
	<li>2,455 cuts to fixed rates for owner occupiers, with an average cut of -0.33%</li>
	<li>764 cuts to variable rates for investors, with an average cut of -0.21%</li>
	<li>2,678 cuts to fixed rates for investors, with an average cut of -0.32%</li>
</ul>
<p>Over the same period there were 535 home loan rate increases, with an average increase of 0.20%.</p>

<p>On 1st January 2020 the average variable rate for owner occupiers paying principal and interest was 3.73% (80% LVR). Today that rate is 3.32% The lowest variable rate was 2.69% and it is now 1.99% (80% LVR) or 1.77% (60% LVR).</p>

<p>On the 1st January 2020 the average 3-year fixed rate for owner occupiers paying principal and interest was 3.15%. Today the average 3-year fixed rate is 2.30%. The lowest 3-year fixed rate was 2.69% and it is now 1.89%.</p>

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/2020_home_loan_rate_changes.jpg" rel="gallery-all"><img alt="" class="image-article-full-width-580px" height="505" src="/s3/files/styles/article_full_width_580px/public/pictures/article-images/2020_home_loan_rate_changes.jpg?itok=dknBFocG" width="580"></a></figure><p><strong>Savings interest rates</strong></p>

<p>From 1 January to 31 December Canstar recorded:</p>

<ul>
<li>529 cuts to savings, with an average cut of -0.18%</li>
	<li>262 cuts to regular savings accounts, with an average cut of -0.19% </li>
	<li>267 cuts to bonus savings accounts, with an average cut of -0.17%</li>
</ul>
<p>On 1st January 2020 the average regular savings account rate was 1.12%. Today that rate is 0.43%. The maximum rate was 2.65% and it is now 1.75% (available for 4-months).</p>

<p>On 1st January 2020 the average bonus savings account rate was 1.47%, now just 0.75%. The maximum rate was 2.25% and it is now 1.35%.</p>
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From 1 January to 31 December there were 6,777 cuts to home loans, with an average cut of -0.30%, according to Canstar

urban.com.au

2020 saw 6,777 interest rate cuts across Australia's home loan institutions

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<p>NAB's low home loan rate has been queried as higher than portrayed.</p>
<p>Praised recently as the only big four bank to keep its variable interest rates stable in the recent out of cycle rate hikes, HashChing calculates NAB already had the highest variable rates of the big four.</p>
<p>HashChing's claim was based on the loan rates for each of the big four banks averaged across HashChing’s data from June, July, and August.</p>
<p>Westpac who were slammed for being the <a href="https://www.urban.com.au/expert-insights/finance/88676-westpac-is-the-first-of-the-big-four-banks-to-hike-out-of-cycle" target="_blank">first to hike rates out of cycle</a> actually had the lowest rates in the first three months of the fiscal year compared to the other big four banks.</p>
<p>HashChing is an online home loan marketplace.</p>
<p><img src="https://www.urban.com.au/images/2018/10/17/HashChing%20Graph.JPG" alt=""></p>
<p>Averaged over June, July, and August, NAB had the most expensive interest rates at 3.94%, 22 basis points above Westpac’s 3.72%.</p>
<p>On a $500,000 home loan, this difference amounts to $24,000 over the life of a loan.</p>
<p>The data also showed that with new loans, Westpac was again the best choice based on rates alone.</p>
<p>The worst choice for consumers taking out a new loan was ANZ whose rates were at a full 26 basis points higher than Westpac, ANZ customers would spend an additional $27,000 over the life of a loan.</p>
<p>"It’s not just ironic, it’s audacious for NAB to proudly claim they were rebuilding trust with Australians when in fact they had the highest rates to begin," HashChing CEO Mandeep Sodhi said.</p>
<p>"It’s no wonder faith in the financial system has been eroded.“</p>
<p>"Homeowners are stressed. It’s becoming harder than ever for Australians to refinance their loans. The tightening lending restrictions, a cooling housing market, and out-of-cycle rate hikes have all had a significant impact.”</p>
<p>Mr Sodhi urged consumers to do their research and engage with a mortgage broker in order to navigate the rapidly changing market and get the best offer possible.</p>
<p>He added, “what’s a fraction of a percent worth? Tens of thousands of dollars. That’s why it’s so crucial that homeowners have reputable brokers in their corner. They do the hard work for them and help protect them from extensive losses.”</p>
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j.ballantyne1990-6AQqhLzZaK

NAB have the most expensive home loan rates of the big four: HashChing

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<div><span style="line-height: 1.3em;">These are the top variable investor loan rates available right now, including minimum loan amounts and maximum LVRs, according to banking comparison website Mozo.</span></div>
<div> </div>
<div>
<strong>Commonwealth Bank</strong> is applying a premium to its fixed rates for investors - 30bp for 1 and 4 years, 40bp for 2 and 3 years, and 10bp for 5 years. </div>
<div> </div>
<div>
<strong>Bankwest</strong> has capped LVR's at 80% for investors across most products. Rates are higher for investors on its 2 year fixed rate and the 3 year introductory rate on its Super Start Home Loan. </div>
<div> </div>
<div>
<strong>NAB</strong> is limiting the maximum LVR on investor loans to 90%. </div>
<div> </div>
<div>
<strong>St.George/BankSA/Bank of Melbourne</strong> has a discount on its Basic Home Loan of 34bp for owner occupiers and its 2 year fixed rates are 20bp lower for owner occupiers. </div>
<div> </div>
<div><strong><span style="text-decoration: underline;">2nd TIER LENDERS</span></strong></div>
<div> </div>
<div>
<div>
<strong>ING Direct </strong>increased fixed rates for investors by 20bp and removed discounts for investors with larger loan amounts and lower LVR's on its Orange Advantage and Mortgage Simplifier variable rate loans. The interest only option is now only available on loans with LVR's less than 80%. </div>
<div> </div>
<div>
<strong>ME Bank</strong> now applies a premium for investor loans of 15bp to the variable rates on its Flexible Home Loan Member Package. </div>
</div>
<div> </div>
<div>
<strong>AMP </strong>has ceased accepting applications for investor loans and adjusted the rates and tier levels on its Professional Package. Variable rates now start at 4.12% for loans over $750,000. ANZ's Simplicity PLUS loan is no longer available for investors and there's a premium on the bank's fixed rates of 40bp for 1 and 4 years, 60bp for 2 and 3 years, and 30bp for 5 years. </div>
<div> </div>
<div>
<strong>Suncorp</strong> is charging a premium to investors on its variable Home Package Plus which varies depending on loan amount and LVR, and has imposed a maximum LVR for investors of 90%. For LVR's less than 80% the rate for owner occupiers borrowing more than $750,000 stayed at 4.15%, but increased by 9bp for owner occupiers borrowing less than that, while increasing by 29bp for investor loans under $750,000 and increasing by 24bp for investor loans over that amount. For LVR's 80 to 90% the rate was cut to 4.34% for all owner occupiers but for investors the rate stays at 4.49% for under $750,000 and 4.44% for more than that.</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">NON-MAJOR LENDERS</span></strong></div>
<div>
<div>
<strong>Freedomlend</strong> has increased rates for investors by 10bp and capped LVR's at 80%. </div>
<div> </div>
<div>
<strong>Heritage Bank</strong> increased variable rates for investors by 30bp across most products and there's now a 10bp premium for its fixed rates. </div>
<div> </div>
<div>
<strong>Homestar </strong>increased rates for investors by 10bp and now has a maximum LVR of 85%. </div>
</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">BUILDING SOCIETIES, CREDIT UNIONS &amp; MUTUALS</span></strong></div>
<div> </div>
<div>
<strong>CUA</strong> has dropped the maximum LVR on its Fresh Start loan from 80% to 70% for investors, and launched two new products (Fresh Start Access and Fresh Start Basic) that are priced 30bp higher for investors. </div>
<div> </div>
<div>
<strong>Newcastle Permanent Building Society</strong> will lend up to 80% LVR for investor loans and applies a $550 application fee. </div>
<div> </div>
<div>
<strong style="line-height: 1.3em;">UBank</strong><span style="line-height: 1.3em;"> will apply a 29bp premium to investor and interest only loans from 10th August.</span>
</div>
<div><strong style="line-height: 1.3em;"> </strong></div>
<div>
<strong style="line-height: 1.3em;">Westpac</strong><span style="line-height: 1.3em;"> has capped LVR's for investor loans at 80%, and is charging an extra 15bp for investors during the 2 year introductory rate period on its Flexi First Option Home Loan.</span>
</div>
<div><strong style="line-height: 1.3em;"> </strong></div>
<div>
<strong style="line-height: 1.3em;">ANZ</strong><span style="line-height: 1.3em;">'s Simplicity PLUS loan is no longer available for investors and there's a premium on the bank's fixed rates of 40bp for 1 and 4 years, 60bp for 2 and 3 years, and 30bp for 5 years.</span>
</div>
<div><span style="line-height: 1.3em;"> </span></div>
<div><a href="/images/2015/08/04/investor_loans.jpg" target="_blank"><span style="line-height: 1.3em;">Click to enlarge</span></a></div>
<div><span style="line-height: 1.3em;"><img src="/images/2015/08/04/investor_loans.jpg" alt=""></span></div>
<div> </div>
<div>
<br><p><span>FOR INFORMATION ON PROPERTY LOANS, RATES AND MORE, VISIT MOZO.COM.AU OR <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank">CLICK HERE</a> FOR THE</span><span> FREE <em>PROPERTY OBSERVER</em> EBOOK, <em>GET LOAN-SAVVY – TIPS FOR A FIRST TIME, INVESTMENT OR REFINANCING LOAN</em>, WHICH HELPS YOU DECIDE ON A HOME LOAN THAT MEETS YOUR REQUIREMENTS.</span></p>
</div>
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po-LsXgBTHBmX

Top variable investor loan rates: Mozo

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<p><span lang="EN-AU">Home loan rates continue to drop with close to 200 cuts in the past month.</span></p>
<p>A new analysis by <a href="https://www.ratecity.com.au/" target="_blank"><span id="0.03398851463273034">RateCity</span>.com.au</a> shows 106 variable rate home loan rates have been cut by 0.17 percentage points on average since September 1.</p>
<p>Fixed rates have also dropped in that time, with 74 rates cut by an average of 0.23 percentage points.</p>
<p>Peter Arnold, data insights director at <span id="0.4777414163587521">RateCity</span>.com.au, said a huge portion of rates on offer are now under the 4 per cent mark and further cuts are imminent. </p>
<p>“The cash rate is on hold yet we are still getting home loan cuts as there is so much competition to get new customers and we don’t expect that to change in the near future,” he said.</p>
<p>“There are now 834 home loans with rates under 4 per cent with ongoing variable rates as low as 3.35 per cent, and three-year fixed rates starting from 3.59 per cent.”</p>
<p><span id="0.13398335279743767">RateCity</span> calculations shows that while a typical RBA rate cut of 0.25 per cent frees up $45 a month on a typical $300,000 home loan, switching from the average standard variable rate of 4.62 per cent to one of the lowest available could save borrowers $220 per month.</p>
<p>Arnold said the fact that rates were on hold this month could make buyers complacent when it comes to finding a home loan.</p>
<p><span lang="EN-AU">“If you’ve been sitting on a rate it’s as good a time as ever to get a good deal as there’s a lot of the banks fighting hard for customers.”</span></p>
<p>“Whether it’s variable, or fixed, rates are at historic lows and buyers will end up ahead if they make the most of the competition in the marketplace,” he said.</p>
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jonathanchancellor-7SQnKwU6yx

Home loan rates at under 4 percent: RateCity

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<p>A new RateCity.com.au study shows 33 lenders – including two major banks, ANZ and NAB, – have lifted some of their popular home loan rates in recent weeks.</p>
<p>A total of 382 home loan rates, including 265 fixed and 117 variable products, have been hiked since January 1.</p>
<p>Peter Arnold, data insights director at RateCity.com.au, said lenders had lifted home loan rates by as much as 0.60 percentage points.</p>
<p>“After several years of record low rates, Australian home owners are facing unwelcome news to start the year as more banks quietly raise rates on their mortgages,” he said.</p>
<p>“The banks began lifting home loan rates late last year, with the biggest hikes being applied to their fixed deals at the time.</p>
<p>As a result, most of the impact last year was felt by new customers who were looking to fix their home loans and were prepared to cop the higher rates on the chin. But that's about to change.</p>
<p>The difference now is that more variable rates are under attack, with 117 hikes in the last five weeks largely hitting existing customers.</p>
<p>This is just the start for higher rates and we expect this trend to continue as banks face higher lending costs both from nervous international funding sources and increased pressure from our local regulator to hold more capital.</p>
<p>Variable borrowers should get set for higher expenses this year or be prepared to switch," he said.</p>
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ANZ and NAB lift home loan rates

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<p>Most Aussies can remember their phone number (94 percent), their number plate (77 percent) and their parent’s phone number (76 percent), but new research from UBank has revealed 85 percent of Australians don’t know their home loan rate.</p>
<p>For the second year, UBank has released The UBank Know Your Numbers Index.</p>
<p>The 2017 report reveals a slight rise in people not knowing their exact home loan rate – up from 84 percent in 2016.</p>
<p>Of those surveyed 44 percent could only recall an approximate figure for their home loan rate while the remainder (41 percent) simply didn’t know their rate at all.</p>
<p>Lee Hatton, chief executive officer of UBank said actively monitoring and seeking the best rate should be a priority for home owners as there are some great benefits on offer.</p>
<p>"We are seeing some of the lowest home loan rates on record, so now is the perfect time to know your numbers, and consider refinancing," she said.</p>
<p>"Simply knowing your exact home loan rate and managing it closely could save you thousands of dollars a year.”</p>
<p>The research, conducted amongst 1,021 Australians with a home loan, also revealed Aussie’s are feeling financially strained, with 54 percent admitting that their financial situation is causing worry and stress.</p>
<p>While a further 33 percent of Australians constantly worry about their future.</p>
<p>“Unfortunately, more and more Australians are making significant sacrifices due to being financially overstretched," she said.</p>
<p>"The better acquainted you are with your numbers, the less stress and more money you’ll have in your back pocket.</p>
<p>"It’s important Australians borrow less and live more.</p>
<p>"Home owners currently paying 4.24 percent p.a. on a 30 year, $360,000 home loan could end up paying more than $37,000 more than they need to.</p>
<p>"If they were on UBank's low variable rate of 3.74 percent p.a. instead, they could have an extra $1246 in their wallet each year."</p>
<p>The UBank Know Your Numbers Index also discovered that nearly one in four (23 percent) think that refinancing a mortgage to save money is a good idea but are yet to find the right competitive rate.</p>
<p>This year for the first time, UBank’s research also surveyed mortgage holders with credit cards and found only 14 percent know what their current credit card interest rate is, while 49 percent don’t know it at all.</p>
<p>A surprising three out of four Australians don’t know how much credit card debt they owe, and 80 percent don’t know exactly how much they are paying each month in credit card interest.</p>
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Majority of Aussies don't know their home loan rate

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<p><span>Westpac has raised the fixed rates attached to nearly all of its interest only packaged loans.</span></p>
<p>The bank lifted fixed rates by up to 30 basis points, with interest only rates for owner occupiers now on par with the rates available to investors. </p>
<p><span>Owner occupiers on interest-only fixed loans will be the hardest hit — iincreasing rates by 30 basis points across 1, 2, 3, and 5 year fixed deals.</span></p>
<p>Westpac’s sister banks St.George, BankSA and Bank of Melbourne also joined the rate hike with increases of up to 25 basis points.</p>
<p>A small number of four year fixed rates were slashed however, with 25bp being the most generous cut among them. </p>
<p>This news comes after CommBank hit investors across 14 of its mortgage products last Friday, with hikes of up to 0.50 basis points.</p>
<p>Last month Westpac increased its variable home loans interest rates for: </p>
<ul>
<li>Owner occupiers customers by 0.03% to 5.32% per annum with principal and interest repayments (comparison rate 5.46% per annum*)</li>
<li>Owner occupiers customers by 0.08% to 5.49% per annum with interest only repayments (comparison rate 5.63% per annum*)</li>
<li>Residential investment property loan rate customers by 0.23% to 5.79% per annum with principal and interest repayments (comparison rate 5.93% per annum*)</li>
<li>Residential investment property loan rate customers by 0.28% to 5.96% per annum with interest only repayments (comparison rate 6.01% per annum*)</li>
</ul>
<p> </p>
<p>Comparison site finder.com.au found the likely <a href="https://www.finder.com.au/bank-interest-rates" target="_blank">average home loans rates</a> (below).</p>
<p>They compared the <a href="https://www.finder.com.au/cheapest-home-loans" target="_blank">cheapest home loan rates available</a> and found UBank have the lowest interest rates at 3.74 percent.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/26/Finder%20home%20loans.jpg" target="_blank">Click here to enlarge</a>.</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/26/Finder%20home%20loans.jpg" alt="" width="614" height="184"></p>
<p>Mozo have too <a href="https://mozo.com.au/home-loans/fixed-rate" target="_blank">compared the best fixed rate home loans</a>, suggesting CUA offer the lowest interest rates at 3.84 percent.</p>
<p>In a ratecity.com.au's '<a href="https://www.ratecity.com.au/home-loans" target="_blank">Todays top loans section</a>', Beyond Bank offers a rate of 3.88 percent.</p>
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Westpac raise interest-only fixed rates for owner occupiers and investors

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<p>ME Bank will decrease its principal-and-interest variable home loan offer by 10 basis points.</p>
<p>This reduction will be available to new owner-occupier borrowers who are applying for a loan in a member package valued at $150,000 or more and with an LVR at 80% or less.</p>
<p>All interest-only vairable and fixed home loan offers to new borrowers will increase by 40 basis points.</p>
<p>Both these changes are effective July 1.</p>
<p>In August ME will increase its reference rates on all existing variable interest-only loans by 40 basis points</p>
<p>The bank said the changes were being made to manage regulatory requirements on interest-only lending.</p>
<p>ME CEO Jamie McPhee, said the changes are necessary to ensure the Bank complies with macro-prudential measures introduced by APRA, while encouraging existing interest-only home loan borrowers to switch to principal-and-interest.</p>
<p>“Owner-occupier principle-and-interest home loan rates are at record lows.</p>
<p>"Now is a great time to pay down the principal on your home loan.</p>
<p>“ME does not apply a fee for switching from interest only to principal-and-interest.”</p>
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